The Regulatory Premium and Band Test (GPT) is a test used to determine whether an insurance product is taxed as insurance or as an investment.
The amount of premiums that can be paid into the insurance policy in relation to the insurance indemnity under the policy is limited to the indicative premium and corridor test (GPT).
GPT is used when the insurance policy focuses on the savings portion and not on the death benefit portion.
To meet the definition of insurance given by the Internal Revenue Service (IRS), a life insurance policy must include a sufficient “amount at risk” that is the protection of the death benefit that the beneficiary receives in the event of the death of the insured.
The benchmark premium and band test (GPT) was established by the Deficit Reduction Act (DEFRA).
Accident insurance covers claims for injuries sustained during the term of the insurance policy, even if they are filed after the cancellation of the policy.
A co-insurance waiver clause refers to language in an insurance policy that sets out conditions under which policyholders must not pay part of a claim.
Performance Based Management (ABM) is a means of analyzing a company’s profitability by looking at every aspect of its business to determine its strengths and weaknesses.
ASO-based self-financing plans are common among large firms because they can spread the risk of costly claims over a large number of employees and dependents.
Comprehensive loss insurance is designed to protect an employer that is self-funding its employee health plan from higher-than-expected claims payments.